Fineotex Chemicals Limited (FCL), incorporated in 1979, has positioned itself as a significant player in the specialty chemicals market, catering to industries such as textiles, construction, water treatment, fertilizer, leather, and paint. This detailed analysis highlights the company's recent performance, growth prospects, and investment potential.
Explore: FINEOTEX CHEMICAL LIMITED
Company Profile:
Business Expansion:
FCL is actively expanding into high-growth areas such as cleaning and hygiene chemicals, with potential collaborations with major detergent manufacturers. The company is also exploring the drilling chemicals market, which could significantly boost growth.
International Expansion:
FCL is progressing towards an international acquisition to diversify its product lines and enhance growth opportunities. This follows their successful acquisition of Biotex in Malaysia, funded by IPO proceeds.
FY24 Highlights:
Margins and Returns:
Sustainability Focus:
FCL is dedicated to creating sustainable chemicals, particularly in the cleaning and hygiene sectors. Their focus on eco-friendly products aligns with global trends towards sustainability.
Capacity Expansion:
Financial Strength:
Upcoming Developments:
Valuation and Investment Potential
Valuation Metrics:
FCL's strong financial performance, strategic expansions, and sustainable focus make it a compelling investment opportunity. With a target price of ₹477, representing a 32% upside from the current levels, it remains a favourable stock for investors seeking growth in the specialty chemicals sector.
Shareholding Pattern:
Shareholders | Dec-23 | Mar-24 | May-24 |
Promoters | 65.04% | 65.03% | 64.46% |
FIIs | 0.82% | 1.45% | 0.97% |
MFs | 3.69% | 3.70% | 3.68% |
Others | 30.46% | 29.83% | 30.90% |
Financial & Valuation (INR Billion):
Y/E March | 2023 | 2024 | 2025E |
Sales | 5 | 6 | 7 |
EBITDA | 1.1 | 1.5 | 1.9 |
Adj. PAT | 0.9 | 1.2 | 1.6 |
EPS (INR) | 8.1 | 10.9 | 14.5 |
Valuation Metrics:
Metric | FY24 | FY25E |
P/E (x) | 32.1 | 24.3 |
P/BV (x) | 8.7 | 6.5 |
EV/EBITDA (x) | 354.1 | 269.9 |
Dividend Yield (%) | - | - |
Balance Sheet (INR Million):
Y/E March | FY22 | FY23 | FY24E | FY25E | FY26E |
Net Sales | 3,682 | 5,170 | 5,690 | 7,055 | 8,607 |
EBITDA | 712 | 1,126 | 1,484 | 1,946 | 2,464 |
EBITDA Margin (%) | 19.3 | 21.8 | 26.1 | 27.6 | 28.6 |
Net Profit (PAT) | 569 | 897 | 1,211 | 1,602 | 2,041 |
EPS (INR) | 5.1 | 8.1 | 10.9 | 14.5 | 18.4 |
EPS Growth (%) | - | 57.5 | 35.0 | 32.3 | 27.5 |
BV/Share (INR) | 23.7 | 31.5 | 40.4 | 54.3 | 72.2 |
RoE (%) | - | 29.4 | 30.4 | 30.6 | 29.1 |
RoCE (%) | - | 36.3 | 38.3 | 38.7 | 37.2 |
P/E (x) | 68.3 | 43.3 | 32.1 | 24.3 | 19.0 |
EV/EBITDA (x) | 737.7 | 466.5 | 354.1 | 269.9 | 213.2 |
EV/Sales (x) | 142.7 | 101.6 | 92.4 | 74.5 | 61.0 |
Cashflow (INR Million):
Y/E March | FY22 | FY23 | FY24E | FY25E | FY26E |
NP/Loss bef Tax | 733 | 1,148 | 1,576 | 2,085 | 2,658 |
Depreciation | 25 | 43 | 60 | 63 | 73 |
Interest & Finance | 9 | 8 | 13 | 13 | 13 |
Direct Taxes Paid | 171 | 264 | 389 | 484 | 617 |
CF from Operations | 175 | 1,114 | 1,124 | 1,408 | 1,789 |
CF from Investments | (8) | (1,018) | (469) | (1,066) | (1,376) |
CF from Fin. Activity | (57) | (64) | (239) | (72) | (72) |
Closing Balance | 275 | 279 | 570 | 454 | 515 |
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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